What services do FTWZ providers offer in India?

The expansion of India’s trade has occurred very rapidly. From FY 2024 – FY 2025, India totalled $824.9 billion in trade (goods + services) represented a growth of over 6% compared to the previous Financial Year, whereas similarly, total import volume continues to grow at the same time as total export volume continues to increase. Now is the time when businesses face mounting pressure to maintain sufficient levels of inventory, reduce total landed costs and transit time across borders. Free Trade & Warehousing Zones (FTWZs) have been a solution to this challenge by providing a customs-free environment for the storage, processing and re-distribution of goods without having to pay any duties. This foundation provides the basis for comprehending the array of services offered by FTWZ providers and why they are important for the transformation of supply chains throughout India.

How are FTWZ  redefining Warehousing & Trade Logistics

In India, traditional warehousing presents many logistical challenges including customs regulations and upfront taxes paid on manufactured goods. However, the FTWZ model is the inverse of this model. The FTWZ is considered a “foreign territory” for customs purposes. Therefore, once goods enter the FTWZ they can be stored, processed, or packaged but any customs duty is not owed until the goods leave the zone for the national market. The ability to hold goods in the FTWZ also provides more options to businesses. The flexibility offered by FTWZs makes them an excellent business option for importing component parts, storing inventory in India for later sale/export, and not paying custom duties before selling products in India.

Core Services Offered by FTWZ Providers in India

• Bonded Warehousing & Duty Deferment- FTWZ providers offer secure, bonded warehouses where imported goods can be stored without immediate payment of customs duties and taxes. This allows companies to hold inventory until there’s demand or final clearance — freeing up working capital and improving cash flow. Especially for importers, distributors, or re-exporters, this deferred duty payment can translate into substantial cash-flow benefits.
• Customs Clearance & Regulatory Facilitation- Most FTWZs  also have on-site customs support personnel (or at least have access to) as well as a liaison to expedite inbound and outbound shipments regardless of whether the shipment will be sold domestically or exported out of the region. The documentation, compliance checks, and import/export formalities associated with the movement of goods can be handled at one location, thereby eliminating time wasted and reducing the likelihood of paperwork delays resulting from having to go through a separate customs clearance facility. This “one-stop” approach to customs and licenses simplifies the further logistics involved in storing imported products compared to using regular warehousing services plus a separate customs service to clear imported products.
• Value Added Service- FTWZs provide more than just the storage of products and inventory – they create additional VA Services (VAS) as well – things such as repacking, relabelling, light assembly and kitting (putting together products into saleable units), bundling and segregating products; as many as 60 (+) VAS according to some operators. This allows companies shipping multiple locations (multiple markets) or retail channels to customise or re-organise the product at the time of final shipment without incurring the cost of duty and transportation.
• Inventory Management & Technological Integration- In order for companies to manage large volumes or complex inventories, most FTWZ providers include the use of WMS/Warehouse Management Systems, real-time Inventory Visibility tools, barcode/RFID tracking, and therefore can enable the management of stock accuracy and batch tracing, expiration date tracking (for granny’s tomatoes), and rapid fulfillment of orders. For example, with large or complex Inventories, the operations of the former static warehouse now enable a company to have a streamlined operation due to a Supply Chain Node. 
• Consolidation, Deconsolidation & Cross-Docking- Companies can use FTWZs to consolidate small inbound shipments into larger outbound shipments or de-consolidate those larger outbound shipments into multiple smaller outbound shipments for distribution. Cross-docking, transferring products from trucks/containers to another truck/container without storing them, is also available at many FTWZs and is especially beneficial for those that have time-sensitive goods or a just-in-time supply chain. By doing so, logistics is streamlined and simplified, as consolidated shipments incur lower costs to handle, store and transport.
• Re-Export, Transshipment & Global Distribution Hub Services- Because FTWZs are considered foreign, companies have no duties when importing, assembling/packaging and exporting out of, while still being able to trade internationally. Therefore, FTWZs can serve as a regional or global distribution hub, allowing companies to quickly and efficiently re-export products (aka warehoused goods) with the least amount of overhead.FTWZs are particularly useful for multinational companies that import materials from different parts of the world to manufacture goods, and distribute to multiple countries globally.
• Trade Compliance, Documentation & Advisory Support- Free Trade Warehousing Zones typically offer consultation services, such as customs documents and export/import compliance, product classification, and product valuation, as well as regulatory submissions. Many businesses (especially micro, small, and medium enterprises) that are unfamiliar with customs procedures benefit from these types of bundled consultation services, which allow them to comply with complex regulations without having to develop the in-house expertise.

Why FTWZ Services Matter — Benefits for Modern Businesses

• The Landed Cost Reduction: The deferred duty, combination of imports/exports, and value-added services create a lower total landed cost.
• Cash Flow Improvements: The duty deferral and flexible storage allow better management of working capital.
• Faster Market Entry: The combined services of cross-docking, real-time inventory, and integrated logistics allow businesses to respond quickly to shifts in demand.
• Supply Chain Resilience: Managing inventory and operations within FTWZs eliminates the need to rely on third-party warehousing and fragmented logistics.
• Easy for MSMEs and Global Companies: The compliance support and bundled services provided by FTWZs can be utilized by large multinationals and smaller businesses looking to grow.

With India experiencing a rapid increase in its exports and an ever-expanding global supply chain presence, FTWZs will likely become the backbone of many efficient trade logistics businesses, particularly importers, exporters, distribution companies, and global sourcing businesses.

Why OSV FTWZ Is the Right Choice

• A holistic customs-managed approach with a single point of contact eliminates the complexity of importing, warehousing, and distributing goods through 100% compliant processes.
• A purpose-built advanced infrastructure provides temperature-controlled zones, high-value handling, scalable and multi-client facilities for a variety of industries.
• Technology-driven visibility means real-time dashboards, automated documentation, and transparent tracking at each stage of the process.
• Cost-effective –Lowered landed costs, optimised storage configurations, and expedited turnaround times for imports and exports.
• SOP-driven operations – Every step in the process is based on established standard operating procedures (SOPs) that comply with customs and trade laws.
• Value-added services deliver labelling, repacking, kitting, testing, light assembly, etc., without incurring any duties.
• Location advantages – Close proximity to key shipping ports and industrial clusters increases the speed at which products can be sent from one place to another.
• Expert compliance support helps importers comply with regulations, manage their documentation requirements, and prepare for audits to minimise their exposure to trade risks.
• Scalability of service is in place to provide companies with the opportunity to establish India-based distribution centres to service APAC, the Middle East, and Africa.

Conclusion

FTWZs have evolved into strategic trade enablers, helping businesses reduce costs, streamline cross-border logistics, and operate with far greater flexibility than traditional warehousing models. With duty-free storage, seamless customs facilitation, and integrated value-added services, they now form a vital backbone for modern supply chains across India. As companies scale in a fast-growing global market, partnering with the right FTWZ provider becomes essential — and OSV FTWZ stands out by offering the infrastructure, compliance strength, and technological sophistication needed to support sustainable, future-ready trade operations.